ETH/BTC Ready To Print New High, Veteran Trader Says


Ethereum blockchain’s native asset, ETH, is about to establish fresh highs against rival Bitcoin, believes avid crypto trader, Elixium.


ETH Breaks Away From BTC

The popular cryptocurrency analyst said in a tweet today that the ETH/BTC trading pair is looking stronger ever since the quoted asset Bitcoin has started underperforming. The benchmark cryptocurrency has corrected by as much as 18.82 percent from its local swing high of $10,540.59 established on October 26.

Over the course of the same timeframe, Ether has jumped by as much as 14.65 percent against bitcoin, showing a negative correlation between the ETH/BTC and BTC/USD trading instruments.

This divergence suggests that Ethereum is stealing attention away from the leading asset right now, which could lead to a significant bull run soon.

Meanwhile, against the US dollar, Ether has been trending sideways. The cryptocurrency was still performing better than bitcoin against the greenback, down only by 7.44 percent from its local high of $199.50.

Elixium added that like Ethereum, the entire altcoin market is standing near a critical support level, awaiting a wild bounce back.

Altcoins are holding right above a critical market cap support level. Any kind of rally here is going to result in huge [percent] increases in their USD values

ethereum, ether, bitcoin

Altcoin market cap awaiting bounce back as Bitcoin loses upside momentum | Image credits: Elixium

The altcoin market cap was trading more than 18 percent higher from the lows established on October 26. The move shows that traders moved their dollars into the rival cryptocurrencies like Ethereum after Bitcoin’s uptrend exhausted.

READ  Binance Coin Price Analysis: BNB Could Attempt Reversal To $26

Just a Minor Bounce?

The current bounce back in Ethereum-Bitcoin markets came as a part of a larger upside correction which started on September 6. Before the said date, the ETH/BTC pair had fallen by more than 61 percent in value from 2019’s high of 0.041. As of now, the pair is up by 30 percent, trading at 0.0212 BTC, meaning it is still halfway before it can reclaim its year-to-date top.

bitcoin, ethereum

Ethereum trending downwards in a larger timeframe | Image credits: TradingView.com

Ether’s bounce for now, correlated with bitcoin’s underperformance. That means bitcoin’s bullish revival can negate Ether’s profits as well. And going by the former’s growing relevance on a macroeconomic scale, there is a better likelihood of it multiplying its gains in the near future. The uncertainty over the US-China trade war and Brexit, coupled with the quantitative easing and rate cut programs in Tier 1 economies, makes a decent use case for Bitcoin. On the other hand, Ethereum’s bullish bias comes from its use in decentralized applications.

Analyst Josh Olszewicz, nevertheless, thinks Ether needs to cross above a psychological resistance range defined by $188-198 before it could even think about an upside breakout. He tweeted:

Do you think ETH’s recent rise against BTC foreshadows an imminent bull run?  Add your thoughts below!

READ  Kyber Network plans to interconnect all blockchains

Images via Shutterstock, Twitter @ElixiumCrypto @econoar @CarpeNoctom, ETH/BTC charts by Tradingview

 





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here